FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Meadowbank Small Business Loans
Tell me more about Meadowbank Small Business Loans
Meadowbank unsecured loans offers amounts between $5,000 and $100,000 with terms between 3 and 24 month and cash flow-friendly repayments that are either per day or weekly.
What is this Unsecured Loan different from a traditional business loan?
You can apply to get the Small Business Loan in under 10 minutes over the phone. You’ll get an answer within the same day and funds may be on your account within 24 hours. Traditional company loans have an annual rate of interest together with additional fees and charges. We offer a business loan is an upfront priced loan so you will be aware in advance of the amount you will have to pay, including any interest, fees or charges. Then, it is broken down into a daily or weekly amount to be paid back.
What could be the Small Business Loan be used for?
The Small Business Loan can be used for almost any company use, including control of cash flow company remodeling, marketing to purchase inventory, new equipment, or as general working capital and much more. The loan cannot be used for personal use.
About the Larger Meadowbank Business Loans
What is the Larger Meadowbank Business Loan?
The Larger Business Loan is a larger amount of loan to help business growth opportunities. Loans are between $100,000 and $500,000 for a fixed period of up to 36 months. Repayments are either weekly or fortnightly in order to accommodate your situation.
How’s the Origination Fee determined?
This Larger Business Loan has an Origination Fee, which is determined at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To be eligible for a credit of this size the business needs to be operating for a minimum of 3 years and have an annual turnover of $700K. You must be a New Zealand Citizen (or Permanent Resident) who is over the age of 18 or have a New Zealand company (with a valid NZBN/IRD) and be able of proving at least 12 months of trading.
What can the funding be used for?
A larger company loan can be used for nearly all business reason, such as company renovations, to purchase new equipment or inventory, as general working capital, and much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan one that requires security?
Asset security is required for accessing funds over $150,000. It’s by taking a charge over assets and can include the registration of this with the PPSR or filing as a caveat.
A director’s or personal guarantee is a promise to repay credit that is generally based rather than defining the security of a specific asset. The person signing the guarantee is personally accountable if the business borrower is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is an online central register run by the New Zealand Government. It records security interests that have been which are registered with respect to personal property (including goods or assets). The PPSR permits priority over personal property to be granted in accordance with the date on which a security interest has been registered.
The caveat can be described as a formal document lodged to provide the public notice of a legal claim to a property.
What is a pre-approval that does not require Credit Check?
When you’re applying for larger business loans that is greater than $250K we can offer a preliminary pre-approval to help make the process. We could be able to apply for this without a credit verification and within 6 hours of your initial application. This pre-approval is based on an initial evaluation that involves you answering some financial health checks. This is not an offer of credit or guarantee of finance. The approval of a conditional loan is subject to a full credit assessment and any offer that you might receive could be based on different conditions.
Do I qualify for funds?
You can apply for a company loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, own a New Zealand business (with a valid NZBN/IRD)
- you must prove at least 6 months’ worth of transactions (for you to qualify for unsecured loan $5K – $100K) or three years of trading (for the Larger Business Loan $100K or $500K)
How do I apply?
The application process is quick and simple. Simply complete the online form in just a few minutes, and a dedicated business credit specialist will contact you to guide you through the process.
To be eligible for up to $100,000, you’ll require identification details (valid Driver’s Licence), an active NZBN/IRD, and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll also need:
$100K to $250K: Application requirements, including credit consent, 6 – 12 months of IRD statements, bank statements (if the loan is greater than $150K).
$250K-$500K: Details for application including credit consent as well as 12 months of bank statements, IRD statement, last 2 years finalised financial statements, as well as interim financial statements for the current year including Aged Payables, Aged Receivables Summary.
What speed will I be able to get an answer?
For an unsecured loan ($5K or more) we usually offer an answer within one hour – as long as you apply during standard business times and permit us to utilise the advanced bank verification system link to immediately verify your bank account information online. If you decide to send us copies of your bank statements , we are able to offer an answer within an business day.
For the Larger Business Loan ($100K up to $500,000) we might be in a position to provide you with pre-approval conditional to your application in about 6 hours. After you’ve signed your pre-approval, the turnaround time is between 2 and 3 days for the final approval, however this can be quicker based upon the circumstances for each application. Certain agreements have been approved within just 24 hours.
The quickest way to apply is to ensure you apply during normal company hours and allow us to use the advance bank verification link to instantly verify your bank account information online. If you choose to send us copies of your bank statement, it will take a little longer.
How fast will I get the funds?
For the Small Business Loan ($5K and up) we typically offer an answer in just one hour – as long as you make your application in normal business time and you allow us to make use of the advanced bank verification system to instantly verify your bank details online. If you choose to send us copies of your bank statement, we’ll offer a decision in as little as the span of one business day.
If you are applying for Larger Business Loans ($100K or more) we could be likely to offer you with conditional pre-approval in around six hours. Once you’ve signed your pre-approval form, it will take about 2-3 days for final approval. However, this could be shorter based on the particular circumstances of each application. Certain transactions have received approval in less than 24 hours.
The fastest method for you to apply is make sure you apply during standard business hours. You can also permit us to use the modern bank verification to instantly verify your bank information online. If you opt to upload copies of your bank statement, it takes a bit longer.
How much can I borrow?
We offer loans that range from $5,000 and $500,000. If you apply for a particular amount, we look at a variety of factors to determine your well-being for your business and the level of the repayments your business will be able to support. The total amount of the loan will be determined by the specifics for your business.
When you submit an application for a certain amount, we consider a variety of factors to assess your well-being that is your business and the level of the repayments your business can support. The amount you receive from the loan will be determined by the particulars that are unique to your company.
Fees & repayments
How much do you charge for the cost of a business loan?
If you decide to make an application for one of our business financing, we’ll assess the risk profile of your company and provide you with a customised proposal that includes the amount of loan, the term and the interest rates. The company loan is an upfront cost loan and you’ll be aware of the total amount you will have to pay, including costs, fees, or interest rates.
What determines the rate that I’m charged?
Business loan interest rates depend on several variables like the amount to be borrowed, what company assets the money are used to purchase, the industry the company is in, how long the business has been in operation, what percentage of the company has enough cash flow to cover the loan, and the overall well-being or financial standing of the company.
What are the charges?
There are no hidden costs for our company loans. You’ll know precisely how much it is that you need to pay and when, starting from the day you sign up. There’s no compounding interest, and no extra fees (as long as you are able to make your payments in time).
We don’t charge an application fee. You can request a credit loan with no cost upfront or any obligation to sign up.
The Origination Fee covers the expenses involved in establishing and managing the loan. You are only charged this fee if you decide to take the loan. Our Origination Fee is 2.5 percentage of the amount of the loan.
Can I pay off the loan early?
You can decide to repay the total amount of your loan at any point in time.
If you choose to pursue this option, please talk to one of our helpful company credit professionals. We will provide you with details on repayment along with an early payout estimate. It will be calculated using the total of the principal amount remaining and the accrued interest up to the time of early payment plus 1.5% of the remaining principal and any fees that remain unpaid.
What are the repayment methods?
To ensure you do not miss repayments and to fit in with your cash flow cycle we provide payments that are either weekly or daily. These are automatically deducted from the nominated company account.
Security & privacy
Will my data be protected?
Making sure that your information is secure, and making it clear how we collect the information we collect, use, share and protect your information, is crucial and is a crucial part of our relationship you.
Is it safe to link my bank account to the platform?
Yes. We employ industry-recognised encryption protocols to safeguard your personal, sensitive financial and other data. Our funders are ISO 27001 certified for our commitment to customer security and security. We employ an exceptionally sophisticated banking verification system to immediately confirm your bank account information online. This allows us to provide an immediate response.
About business loans
What’s an asset-based borrow (a secured loan)?
Asset-based borrowing is when an business owner uses an asset that they own to obtain the loan. The asset can be either a personal asset like the family home or an company asset such as a truck or other piece of machinery.
The vast majority of lenders, including the banks with the biggest size, prefer to guarantee loans against an asset. If you’re having trouble paying back the loan, then your asset may be sold by the lender. In essence, it is an opportunity to secure new funding using the worth of the asset you already have.
Are I need security for a business loan?
For loans that exceed $150,000, no asset security is required in advance to gain access to the funds however, we require a personal guarantee. require an individual guarantee. As long as you follow the terms of your loan (as detailed in your loan contract document) Asset security is not needed. For loans that exceed $150K, generally there is a personal guarantee and security in the form an asset charge.